GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - NYSE:GVA - US3873281071 - Common Stock
109.6 USD
+2 (+1.86%)
109.6 USD
0 (0%)
Overall GVA gets a fundamental rating of 6 out of 10. We evaluated GVA against 52 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. An interesting combination arises when we look at growth and value: GVA is growing strongly while it also seems undervalued. These ratings could make GVA a good candidate for value and growth investing.
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
In the past year GVA had a positive cash flow from operations.
Of the past 5 years GVA 4 years were profitable.
In the past 5 years GVA always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.10%, GVA is doing good in the industry, outperforming 63.46% of the companies in the same industry.
With a decent Return On Equity value of 14.91%, GVA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.48%, GVA is in line with its industry, outperforming 53.85% of the companies in the same industry.
GVA had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 17.22%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROIC | 6.48% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.89%, GVA is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of GVA has grown nicely.
GVA has a Operating Margin (5.33%) which is comparable to the rest of the industry.
The Gross Margin of GVA (15.61%) is comparable to the rest of the industry.
GVA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GVA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GVA has less shares outstanding
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.45 indicates that GVA is not in any danger for bankruptcy at the moment.
The Altman-Z score of GVA (3.45) is comparable to the rest of the industry.
GVA has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as GVA would need 2.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, GVA is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that GVA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, GVA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for GVA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 3.45 |
ROIC/WACC0.69
WACC9.45%
2.3 Liquidity
GVA has a Current Ratio of 1.57. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a Current ratio of 1.57. This is in the better half of the industry: GVA outperforms 73.08% of its industry peers.
A Quick Ratio of 1.45 indicates that GVA should not have too much problems paying its short term obligations.
GVA's Quick ratio of 1.45 is fine compared to the rest of the industry. GVA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 59.63% over the past year.
GVA shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
The Revenue has been growing slightly by 7.18% in the past year.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
3.2 Future
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
GVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.43% yearly.
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.00, the valuation of GVA can be described as rather expensive.
GVA's Price/Earnings ratio is rather cheap when compared to the industry. GVA is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. GVA is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.74, which indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaper than 88.46% of the companies in the same industry.
GVA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 16.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued a bit cheaper than the industry average as 78.85% of the companies are valued more expensively.
78.85% of the companies in the same industry are more expensive than GVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.53 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
GVA's earnings are expected to grow with 24.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)0.64
EPS Next 2Y27.31%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.47%, which is pretty low.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.57. GVA pays more dividend than 86.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 14.32% of its income as dividend. This is a sustainable payout ratio.
DP14.32%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
109.6
+2 (+1.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change0.76%
Ins Owners1.1%
Ins Owner Change-10.58%
Market Cap4.80B
Analysts80
Price Target131.92 (20.36%)
Short Float %10.34%
Short Ratio8.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP14.32%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)57.51%
Min EPS beat(2)12.74%
Max EPS beat(2)102.29%
EPS beat(4)2
Avg EPS beat(4)23.24%
Min EPS beat(4)-17.71%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)13.65%
EPS beat(12)7
Avg EPS beat(12)-124.98%
EPS beat(16)7
Avg EPS beat(16)-115.12%
Revenue beat(2)0
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-3.52%
Max Revenue beat(2)-1.92%
Revenue beat(4)1
Avg Revenue beat(4)-1.36%
Min Revenue beat(4)-3.52%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)6
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)0.01%
PT rev (1m)17.22%
PT rev (3m)27.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.64%
EPS NY rev (1m)1.61%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)9.23%
Revenue NY rev (1m)4.46%
Revenue NY rev (3m)4.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21 | ||
| Fwd PE | 16.74 | ||
| P/S | 1.18 | ||
| P/FCF | 15.53 | ||
| P/OCF | 10.92 | ||
| P/B | 4.52 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 13.4 |
EPS(TTM)5.22
EY4.76%
EPS(NY)6.55
Fwd EY5.97%
FCF(TTM)7.06
FCFY6.44%
OCF(TTM)10.04
OCFY9.16%
SpS93.13
BVpS24.27
TBVpS16.54
PEG (NY)0.53
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.1% | ||
| ROE | 14.91% | ||
| ROCE | 10.71% | ||
| ROIC | 6.48% | ||
| ROICexc | 8.82% | ||
| ROICexgc | 11.41% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.89% | ||
| GM | 15.61% | ||
| FCFM | 7.58% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 98% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 8.09 | ||
| Cash Conversion | 125.42% | ||
| Profit Quality | 195.06% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 3.45 |
F-Score7
WACC9.45%
ROIC/WACC0.69
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.63%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%98.97%
EPS Next Y39.55%
EPS Next 2Y27.31%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue 1Y (TTM)7.18%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.02%
Revenue Next Year12.39%
Revenue Next 2Y10.74%
Revenue Next 3Y9.43%
Revenue Next 5YN/A
EBIT growth 1Y94.42%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year96.13%
EBIT Next 3Y33.81%
EBIT Next 5YN/A
FCF growth 1Y450.89%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y999.24%
OCF growth 3Y175.18%
OCF growth 5Y32.58%